Distribution and logistic Management

WAREHOUSING

Warehousing and storage is an act of storing and

assorting the finished goods so as to create maximum time utility at minimum cost
Now a days, many private firms are turning to distribution centers rather than constructing the warehouses.

Functions of a warehouse

Receiving the goods Storing Order Taking Dispatch

While designing a warehouse, a manager ought to keep in mind these elements

Land and Building

Management and staff Operating methods and Procedures Equipment

Types of warehouses General warehouse

Specific warehouse Bonded warehouse Bulk storage warehouse Refrigerated warehouse

Warehouse Location Centralized warehouse Decentralized warehouse

Centralized warehouse
Benefits: 1. It improves operating efficiency and inventory control is felt easier and effective There is no need to carry large stock and there are no dangers of stock outs resulting in low level inventories Transport facilities are optimally used as routing and scheduling becomes handy.

2.

3.

4.

The firm is better placed to meet the demand fluctuations from different market segments at relatively short notice.

Drawbacks:
1. It results in loss of customer service due to spatial considerations and delays are caused. The firm is deprived of its potential market share

2.

3. It results in heavy transport costs unless each delivery is sizeable as the carrier has to cover long distance.

Decentralized warehouse
Benefits:
1. The firm serves the customers better positioning the inventory in their proximity. This is the result of maximum time utility created by it. 2. The firm is likely to effect savings in freight charges because of bulk handling 3. It facilitates product movement by block rates

Drawbacks:
1. It adds to the administrative cost as the firm is to manage number of warehouses distantly located with the acute problem of maintaining high level efficiency It calls for heavy investment as the firm is to hold inventory at different locations in larger lots.

2.